ABN AMRO Bank NV
ABN: XAMS (NLD)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| gg | LOCK|<> | LOCK|SsW^x?q |
ABN Amro: Benefits From the Oligopolistic Nature of the Dutch Banking Sector
Business Strategy and Outlook
After emerging from outright government ownership, ABN Amro is one of the simplest banks in Europe. It is essentially a retail and commercial bank with limited capital markets activities. Its strong retail deposit base supported above-average profitability until negative interest rates started to bite. Having a lending book dominated by fixed-rate mortgages did not help either. The long-duration lending book forces ABN Amro to use more expensive long-term funding to manage liquidity risk, which compounds margin pressure in a declining interest-rate environment.
